By:  Fraser                                           S.B. No. 1398
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the authority of the governing body of a municipality
 1-3     to change previously adopted zoning regulations.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 211.003, Local Government Code, is
 1-6     amended by adding Subsection (d) to read as follows:
 1-7           (d)  Notwithstanding any other provision of this subchapter,
 1-8     the governing body of a municipality may not change the zoning
 1-9     classification of a property that results in a diminution of more
1-10     than 25 percent of the property's value unless:
1-11                 (1)  the owner of the property:
1-12                       (A)  waives any right to object to the proposed
1-13     change; or
1-14                       (B)  fails to file a written objection with the
1-15     governing body before the 90th day after the date the governing
1-16     body notifies the property owner of the proposed change; or
1-17                 (2)  the governing body compensates the property owner
1-18     for the diminution in value resulting from the change as determined
1-19     by:
1-20                       (A)  an agreement with the property owner; or
1-21                       (B)  a proceeding governed by Chapter 21,
1-22     Property Code.
1-23           SECTION 2.  Subchapter A, Chapter 21, Property Code, is
1-24     amended by amending Section 21.003 and adding Section 21.004 to
1-25     read as follows:
 2-1           Sec. 21.003.  DISTRICT COURT AUTHORITY.  A district court may
 2-2     determine all issues, including the authority to condemn property
 2-3     and the assessment of damages, in any suit filed under this chapter
 2-4     and any suit filed:
 2-5                 (1)  in which this state, a political subdivision of
 2-6     this state, a person, an association of persons, or a corporation
 2-7     is a party; and
 2-8                 (2)  that involves a claim for property or for damages
 2-9     to property occupied by the party under the party's eminent domain
2-10     authority or for an injunction to prevent the party from entering
2-11     or using the property under the party's eminent domain authority.
2-12           Sec. 21.004.  PROCEEDINGS REGARDING CHANGE OF ZONING
2-13     CLASSIFICATION.  A proceeding filed under this chapter for the
2-14     purpose of determining the diminution of a property's value under
2-15     Section 211.003(d), Local Government Code, is a condemnation or
2-16     eminent domain proceeding under this chapter for the sole purpose
2-17     of satisfying the procedures required by this chapter.  In such
2-18     proceedings, the condemnor or acquiring entity is the municipality,
2-19     the condemned property is the property for which the zoning is to
2-20     be reclassified, and the condemnation is the change in the
2-21     property's zoning classification.
2-22           SECTION 3.  Subsection (a), Section 21.0111, Property Code,
2-23     is amended to read as follows:
2-24           (a)  A governmental entity with eminent domain authority that
2-25     wants to acquire real property for a public use or change a
2-26     property's zoning classification shall disclose to the property
 3-1     owner at the time an offer to purchase or otherwise compensate is
 3-2     made any and all existing appraisal reports produced or acquired by
 3-3     the governmental entity relating specifically to the owner's
 3-4     property and used in determining the final valuation offer.
 3-5           SECTION 4.  Section 21.012, Property Code, is amended to read
 3-6     as follows:
 3-7           Sec. 21.012.  CONDEMNATION PETITION.  (a)  If the United
 3-8     States, this state, a political subdivision of this state, a
 3-9     corporation with eminent domain authority, or an irrigation, water
3-10     improvement, or water power control district created by law wants
3-11     to acquire real property for public use or change a property's
3-12     zoning classification but is unable to agree with the owner of the
3-13     property on the amount of damages, the condemning entity may begin
3-14     a condemnation proceeding by filing a petition in the proper court.
3-15           (b)  The petition must:
3-16                 (1)  describe the property to be condemned or to be
3-17     reclassified under a different zoning classification;
3-18                 (2)  state the purpose for which the entity intends to
3-19     use the property or for which the property's zoning is to be
3-20     changed;
3-21                 (3)  state the name of the owner of the property if the
3-22     owner is known; and
3-23                 (4)  state that the entity and the property owner are
3-24     unable to agree on the damages.
3-25           SECTION 5.  Subsection (a), Section 21.021, Property Code, is
3-26     amended to read as follows:
 4-1           (a)  After the special commissioners have made an award in a
 4-2     condemnation proceeding, except as provided by Subsection (c) of
 4-3     this section, the condemnor may take possession of the condemned
 4-4     property or change the zoning classification of the property
 4-5     pending the results of further litigation if the condemnor:
 4-6                 (1)  pays to the property owner the amount of damages
 4-7     and costs awarded by the special commissioners or deposits that
 4-8     amount of money with the court subject to the order of the property
 4-9     owner;
4-10                 (2)  deposits with the court either the amount of money
4-11     awarded by the special commissioners as damages or a surety bond in
4-12     the same amount issued by a surety company qualified to do business
4-13     in this state, conditioned to secure the payment of an award of
4-14     damages by the court in excess of the award of the special
4-15     commissioners; and
4-16                 (3)  executes a bond that has two or more good and
4-17     solvent sureties approved by the judge of the court in which the
4-18     proceeding is pending and conditioned to secure the payment of
4-19     additional costs that may be awarded to the property owner by the
4-20     trial court or on appeal.
4-21           SECTION 6.  This Act takes effect September 1, 2001.